A continuing chronicle of how democracy is being destroyed across the entire European Union.
This blog is henceforth exploring various means whereby democracy may now be restored within or to the EU's formerly independent nation states now that economic chaos looms following the euro currency's apparently deliberate self-destruction, as long predicted on this blog? (Changed 23/11/10)

Thursday, December 02, 2010

ECB to continue bond purchases

This observer found the ECB press conference entirely unsatisfactory. The bond purchases will continue through the first quarter of next year but whether there would be any upper limit was a question among many that received no answer.

Jean-Claude Trichet was repeatedly (as usual) at pains to boast of having delivered 1.97% inflation to the "federal" citizens of Europe??? over the past twelve years, and spoke of the pride this evinced in him and amongst the MEPs when he had boasted of achiving this feat two days ago.

Left unsaid and undiscussed by the ECB chief was the glaring fact that having inflation brought in just under the prescribed target for the entire existence of the euro does not help nor alleviate the fact that the currency is clearly in its death throes and unlikely to be able to survive, disregarding whatever professions of determination may come from EU Government Heads, EU Commissioners or other EU officials.

At one stage I felt sympathy for this devious man, that came when he correctly asserted that it had not been he who had destroyed the Growth and Stability pact in 2004/2005, yet the very nature of the currency had to require that the pact would soon have to be abandoned given all the other inherent contradictions and Trichet must have been always aware that would quickly be the case.....the end of such feelings of sympathy therefore quickly followed.

More short term cash will now be grabbed by the bankers and market speculators, (whose loss it will eventually prove to be will be a fascinating future question) in three months we will return to an even worse situation if the markets are prepared to grant such a breathing space. As predicted on this blog the words of the ECB Chief have achieved little, activity on the market according to an FT questioner shows more seriousness, but only of the very worst sort, supposed sterilised quantatitive easing by the ECB purchase of EU peripheral country's bonds!